Saturday 13 Apr 2024
main news image

KUALA LUMPUR (Sept 20): CIMB IB Research has upgraded UMW Holdings Bhd to “Hold” at RM5.44 with a higher target price of RM5.90 (from RM4.90) and said it left UMW’s 2Q17 briefing feeling confident on the group’s earnings recovery, driven by narrowing losses from non-listed OG assets and stronger auto contribution.

In a note Sept 19, the research house said it expects stronger earnings in 2H17 following completed cost rationalisation exercise for its non-listed oil & gas assets in India, Oman and China in 1H17.

“Moreover, we project stronger earnings from M&E in 2H17F due to maiden contribution from aerospace manufacturing and higher automotive earnings.

“We upgrade the stock to Hold with a higher RM5.90 target price as we roll over our valuation to FY19F, still based on 14x P/E. We prefer Bermaz Auto Bhd for exposure to the auto sector,” it said.

      Text Size